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Posted: April 14th, 2022
The Tampa Tribune and the St. Petersburg Times compete for readers in the Tampa
The Tampa Tribune and the St. Petersburg Times compete for readers in the Tampa Bay market for newspapers. Lately, each newspapers thought-about altering the costs they cost for their Sunday editions. Suppose they thought-about the following payoff desk for making a simultaneous determination to cost both a low value of $zero.50 or a excessive value of $1.00. Tampa’s income are proven in common kind. St. Petersburg’s income are proven in daring.
For questions 1 – 10, select the right reply to fill in the blanks. Use the steered phrases in parentheses after every clean. An in depth rationalization have to be given to defend every selection.
Tampa Tribune
Low Worth
Excessive Worth
A.
B.
Low value
$120,000
$54,000
St Pete Times
$100,000
$120,000
C.
D.
Excessive Worth
$90,000
$88,000
$54,000
$90,000
1. Tampa Tribune’s dominant technique is ____________ (low value, excessive value, it has no dominant technique).
2. St. Petersburg Times’ dominant technique is ____________ (low value, excessive value, it has no dominant technique).
three. Tampa Tribune’s dominated technique is ____________ (low value, excessive value, it has no dominant technique)
four. St. Petersburg Times’ dominated technique is ____________ (low value, excessive value, it has no dominant technique).
5. This newspaper pricing determination ________ (is, is just not) a Prisoners’ Dilemma.
6. Is there a Nash Equilibrium in this recreation? In that case, which cell(s) is/are the Nash? Is/are the Nash Dominant Technique Equilibrium?
7. Which cell(s) is/are strategically secure?
Use the following recreation to reply questions Eight-10. Be sure you present your whole math step-by-step.
Alcoa and Kaiser, duopolists in the market for main aluminum ingot, select costs of their 500 foot rolls of sheet aluminum on the first day of the month. The following payoff desk exhibits their month-to-month payoffs ensuing from the pricing choices they’ll make.
Alcoa
Excessive value
Low value
Kaiser
Excessive value
A
$400, $500
B
$175, $575
Low value
C
$525, $200
D
$273, $250
7. Suppose Alcoa and Kaiser repeat their pricing determination on the first day of each month. Suppose they’ve been cooperating for the previous few months, however now the supervisor at Kaiser is making an attempt to resolve whether or not to cheat or to proceed cooperating. Kaiser’s supervisor believes Kaiser can get away with dishonest for two months, however he additionally believes that Kaiser can be punished for the subsequent two months after dishonest. After punishment, Kaiser’s supervisor expects the two companies would return to cooperation. Kaiser’s supervisor ignores the time-value of cash and doesn’t low cost future advantages or prices.
Eight. What’s the month-to-month acquire to Kaiser from dishonest? What’s the current worth of the profit from dishonest for the two months of dishonest?
9. What’s the month-to-month value of punishment to Kaiser? What’s the current worth of the value of dishonest for the two months of punishment?
10. Will Kaiser cooperate or cheat? Clarify.
11. Suppose you had been requested to handle a golf course that was at present charging a uniform value. Would you recommend that the course proceed with this value plan or change to a two-part pricing plan? Clarify your determination and how you’ll select the optimum value.
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In the Tampa Bay newspaper market, the Tampa Tribune and the St. Petersburg Times compete for readers. Each newspapers have just lately thought-about altering the costs they cost for their Sunday editions. Assume they thought-about the following payoff desk when deciding whether or not to cost a low value of $zero.50 or a excessive value of $1.00 at the similar time. The income of Tampa are proven in common kind. Earnings for St. Petersburg are highlighted in daring.
To fill in the blanks for questions 1–10, choose the right reply. After every clean, put the steered phrases in parentheses. To defend every choice, an in depth rationalization have to be offered.
The Tampa Tribune
Low Value
Costly
A.
B.
Low value
$120,000
$54,000
The St. Petersburg Times
$100,000
$120,000
C.
D.
Costly
$90,000
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